HIV & AIDS
independent economic impact study - bpo&o south africa
Read the final research paper on the
"Economic Impact of HIV&AIDS on
the South Africa BPO&O Contact Centres."
Economic Impact of HIV&AIDS on the South African BPO&O Contact Centre Industry
This research study will utilise an economic impact simulation model to study the BPO&O sector in relation to factors known, through research, to affect the way in which the BPO&O sector will experience the effects of the HIV and AIDS epidemic. Read more...
The main objective of this research is to conduct quantitative research, aimed at measuring the possible economic impact of HIV and AIDS on the BPO&O sector within South Africa. Read more...
The Minister of Trade and Industry, Mandisi Mpahlwa, gave an overview of the South African Governments commitment to the growth and sustainable development within the Business Process Outsourcing and Offshoring (BPO&O) sector in South Africa.. Read more...
background
The minister stated in her keynote address at the opening day of the National BPO&O Policy Conference, held under the theme "Now and Beyond", that it is also anticipated that there will be some unmet demand, as existing centres will not be able to maintain or grow their supply for a number of reasons." Some of the reasons, stated include, talent and infrastructure bottle-necks, performance issues and the requirements of some companies to develop global footprints. Minister Mpahlwa, however, also explained that evidence exist that rapid development is possible. More than 25 000 direct and indirect jobs have been created since the launch of the Government Assistance and Support programme (GAS) in 2007. GAS has, since its inception, created and attracted R658 927 995.00 in investment value. Minister Mpahlwa has, during her key note speech, questioned whether South Africa was maximising the potential offered by the sector in terms of economic growth, employment opportunities, labour absorption and skills development.
The skills shortages in the industry and alarmingly high industry attrition rates are highlighted by Rod Jones from C3 Africa. He states about attrition in the South African BPO&O Call Centre Report (2008, p 61) that a really frightening trend is the fact that one quarter of KZN contact centers have attrition rates of over 25%, compared to just 10.3% in Gauteng and 9.7% in the Western Cape. Rod Jones also argues that the large percentage of contact centre work carried out in the KZN region comprises of high volume debt collecting and outbound telesales; both activities traditionally manifest high attrition. The largest attrition rates are experienced by in the largest contact centres 30% of these contact centres experienced attrition of over 25%. (207/2008, p 63). There is no evidence available to link the high attrition rates to the HIV prevalence on a regional and/or national scale, but the Human Science Research Council has highlighted that KZN has the second highest prevalence rates in South Africa (Figure 1). It could be argued that the high attrition rate, combined with the HIV and AIDS prevalence rate, will have a significant impact on the noted skills shortages within the industry.
The Minister of Trade and Industry, Mandisi Mpahlwa, gave an overview of the South African Governments commitment to the growth and sustainable development within the Business Process Outsourcing and Offshoring (BPO&O) sector in South Africa. Minister Mpahlwa stated that the South African government has identified the Business Process Outsourcing and Off-shoring (BPO&O) sector as one of the top three priority sectors to stimulate growth within its Accelerated Shared Growth Initiative (ASGI-SA). The BPO&O sector is identified for its potential, not only to attract and attain local and foreign investment, but also create employment opportunities in the economy.
Despite the BPO&O industry being relatively new in South Africa, it already employs in the region 100 000 people to date. The phenomenal growth of the national and local (Western Cape) industry is fueled by the expected global growth. The BPO&O sector will grow globally by 50% over the short term. The Department of Trade and Industry (the Dti), has in an effort to realise the South African vision for South Africa to be recognised as a Tier 2 player in the international market, introduced an incentive programme to attract investment in the BPO&O sector. This incentive is offered to local and foreign investors establishing projects that aim primarily to service offshore clients. The incentive is implemented in the form of grants towards approved qualifying expenditure for start-up and expanding BPO&O operations.
rationale for hiv and aids economic impact research
According to a World Economic Forum survey conducted in 2006, more than one half of business executives surveyed worldwide expect HIV and AIDS to have a visible impact on their business over the next five years. The same survey reported that companies surveyed in sub-Saharan Africa predicted that HIV and AIDS will have a serious impact on their businesses, – 87% predicted a moderate impact and 54% of companies surveyed predicted a serious impact (World Economic Forum, 2006). HIV and AIDS impact in various ways on companies and affect business profitability in many ways. HIV and AIDS decrease profits by increasing cost, decreasing productivity and negatively affecting markets.
The Economic Impact Analysis will measure the impact of HIV and AIDS on various levels. The impact will furthermore depend on local circumstances. These circumstances include, but are not limited to, the benefits the business affords its employee, as well as, skilled labour, at various levels as explained in Figure 4. The progression of the disease will have an impact on a range of costs. This research study will utilise an economic impact simulation model to study the BPO&O sector in relation to factors known, through research, to affect the way in which the BPO&O sector will experience the effects of the HIV and AIDS epidemic. It is important to highlight that individual and/or organisational information is required to complete the study, but all information will be audited and will not be made available to the general public or published without the consent of the particpants. All participants will receive a full economic impact review at the end of the study.
Figure 4: Impact of HIV and AIDS on a company
Source: UNAID et al, 2000
research problem and hypothesis
Brad Mears, Chief Executive Officer of the South African Business Coalition on HIV and AIDS (SABCOHA), states, in a survey conducted by the Bureau of Economic Research (BER), that the “lethargic response by certain sectors is disturbing.” Mears argues that this response may be due to the current relatively small effect of the epidemic in these sectors. “It must be realised that the impact of HIV and AIDS manifests itself gradually "(2004, Foreword).
The HIV and AIDS epidemic has become a developmental issue with political, social and economical dimensions. This could possibly have a negative impact; not only on local, but also foreign investment. It may also be argued that the current undefined response, or lack of a collective response to HIV and AIDS in the BPO&O industry, could be attributed to the fact that there is little evidence available to advocate the threat and/or possible economical impact of HIV and AIDS on the BPO&O sector in South Africa.
HIV and AIDS may impact the continuous economical growth of the BPO&O sector on various levels. It is therefore important to understand the possible economic impact HIV and AIDS may have, not only on the growth of the BPO&O sector, but also more importantly on continuous sustainable development.
There is currently very little information available about the the possible impact of HIV and AIDS on the BPO&O sector in South Africa. In some cased, there is no onformation available at all. The lack of reliable information further exuberates the discourse between the possible economic impact and the industry’s strategic response to prevent and / or eliminate the economic impact of HIV and AIDS on the BPO&O sector.
1
What is the possible current and future economic impact of HIV and AIDS on the BPO&O industry in South Africa? How does a young BPO&O sector with enormous growth potential avoid, eliminate and/or reduce the economical impact of HIV and AIDS on sustainable growth and development?
2
3
In this research study the following hypotheses will be tested:
1) Do the current and future Economic Impact of HIV and AIDS on the BPO&O sector pose a real threat to continuous and sustainable development and foreign investment?
2) Will participation in an economical impact research survey increase corporate intelligence and inform strategic planning in terms of HIV and AIDS prevention and treatment campaigns?
research objectives
overall aims
research objective
The main objective of this research is to conduct quantitative research, aimed at measuring the possible economic impact of HIV and AIDS on the BPO&O sector within South Africa.
The research will also aim to highlight the lack of existing validated quantitative data available, describing the economic impact of HIV and AIDS on this sector in order to help industry leaders to formulate, design, develop and implement a strategic response to HIV and AIDS, based on informed statistics to prevent further HIV infections and to manage the possible impact of HIV and AIDS in the workplace.
1. To assess the possible economic impact of HIV and AIDS on the BPO&O sector.
2. To analyse the recorded data from participating BPO&O companies.
3. To identify the economic impact of HIV and AIDS in the BPO&O sector in South Africa.
4. To provide guidelines for informed strategic policy formulation, design, development and implemention of a strategic response to HIV and AIDS.
expected results
It is expected the following hypoteses tested will be held.
2) Will participation in an economical impact research survey increase corporate intelligence and inform strategic planning in terms of HIV and AIDS prevention and treatment campaigns.
research significance
industry significance
corporate significance
The South African BPO&O industry shows the potential to attract and retain local and sustainable foreign investments and also to create 25000 direct and 100000 indirect jobs. The BPO&O industry need to, in order to penetrate the global outsourcing and offshoring business community, include strategic HIV and AIDS policy formulation in order to increase the South African value proposition as a global competitor.
The most important benefit of this research project will therefore be to provide the BPO&O sector with validated data and research findings. This could enable the industry to formulate HIV and AIDS policies specific to the sector and plan and implement national strategies to prevent further HIV infections, and also manage the possible economic impact of HIV and AIDS on this volatile and cost conscious sector.
The strategic policy response will support, not only national role players, but also smaller contact centres, were there are little and/or no benefits on an economic scale and a heightened sensitivity to the possible impact of HIV and AIDS on the industry. It is particularly important to focus on smaller contact centres due to the fact that HIV and AIDS might have the highest impact on smaller contact centres. The 2007/8 South African National BPO & Call Centre Report highlighted the fact that approximately 49% of all contact centres in South Africa house under twenty seats each (2007/8, p. 12).
This study will especially benefit small and medium sized business on various levels. Professor Alan Whiteside of the University of Natal highlighted four areas of concern in the private sector which need urgent attention. These areas include:
• Publicly available methodologies to assess the impact of HIV and AIDS on business.
• An understanding of the macroeconomic effects of the epidemic on nations, particularly on governments and the business and investment environment.
• Assessment of the consequences for small- and medium-sized businesses.
• Better analysis and understanding of the burden shifting between the public and private sectors and between organisations (public or private) as well as households and individuals.
This research will hopefully provide methodologies and validated data to the BPO&O industry and should provide an overview of the possible impact of HIV and AIDS on the BPO&O sector. It shold highlight the consequences for small, medium and large organisations. The research should finally enable these businesses to act unilaterally by formulating collaborative HIV and AIDS strategies for all stakeholders, across all sectors within the BPO&O sector.
about me
HiV and AIDS affects all of us in some form or shape. I have been actively involved in HIV and AIDS management and care over the past eight years.
My main focus, and area of concern, has always been helping charitable community organisation and the most vulnerable members of our society - children. My passion to help organisations like Fikilela, within our communities in the Western Cape, will still continue, however I have decided to expand my focus and experience to the corporate sector.
HIV and AIDS adversely affects our workforces and the communities we operate in. It is therefore important to understand the epidemic and to respond appropriately with strategic policy formulation and workplace programs, which may eliminate discrimination and promote effective and cost efficient prevention and care programs.
my study leader - professor augustyn
Johan Augustyn is a full professor at the Africa Centre for HIV/AIDS Management. He has taught at the former Rand Afrikaans University (now the University of Johannesburg) and was involved in the corporate sector as training and development consultant at the former Trust Bank and as senior strategic human resources manager at Metropolitan Life. His teaching and research interests are strategic human resource management, organisational behaviour, training and development, research methodology, learning theories and employment equity. He has completed research projects for Telkom, De Beers Consolidated Diamond Mines, the South African Road Safety Council and various local authorities. Augustyn is a registered industrial psychologist with the Professional Board for Psychology, a Fellow of the Institute of People Management and a member of the South African Board for Personnel Practice. He has spent sabbaticals at various universities in the United States. Augustyn has been the study leader of 35 master’s theses and was the principal supervisor of 4 PhD dissertations. He has published 40 scientific articles, 20 research reports and made approximately 150 national and international presentations. He consults to a number of organisations (e.g. Debswana and Transnet) on managing HIV and AIDS in the world of work. He holds a PhD in industrial and organisational psychology from Stellenbosch University.
contact & feedback
Your feedback is important to the first independent HIV and AIDS Economic Impact study in the BPO&O Sector in South Africa.
Let me know if you require more information, what you think of the site and most important - would you like to participate in the study. All participating companies will receive a copy of the final paper.
This paper should give you a clear indication of the possible economic impact HIV and AIDS may have on the BPO&O Call Centre Inductry in South Africa.
So me let me know if you would like to be one of the first companies to receive the economic impact study report.
donations
BPO&O Independent HIV and AIDS Economic Impact Study - South Africa
The BPO&O Independent HIV and AIDS Economic Impact Study forms part of the requirements for the degree of Master in Philosophy (HIV and AIDS) Management at the University of Stellenbosch. This is an independent and unfunded research project and any financial contribution towards the completion of the study will be greatly appreciated.
I am appealing to anyone who has any form of disposable income (irrespective of how small - doesn't matter how little) to kindly make a donation to this research project in support, not only this research project, but also the continuous fight against HIV and AIDS.
Please contact me directly if you require a detailed breakdown of the cost associated with this study. All donations will be published on this site.
Banking details will be made available to individuals, and / or organisations who are interested in making a donation.
2009 Scholarships
Thank you to Rino for the R5000.00 scholarship towards completing my MPhil in Strategic HIV and AIDS Management in the World of Work studies for 2009.
C3Africa
The C3Africa Group delivers integrated business optimisation solutions to the call centre, contact centre and customer service industries. The group offers a range of specialised services - Strategic Consulting, Training, Research, Marketing, Media and Events - in order to fully optimise our clients’ business objectives. Access to and the interpretation of exclusive industry research and knowledge, gives C3Africa the ability to provide refined business intelligence by means of which the group delivers competitive advantage to clients. These unique insights and thought leadership models guide and assist clients to increase efficiencies, reduce or cap costs, increase revenues, reduce risk and increase stakeholder satisfaction. In the case of vendors and service providers, C3Africa Marketing delivers high-impact strategies, methodologies and targeted activities to build measurable results.
download documents
christopher mccreanor - short cv
final research paper
introduction by professor jan du toit
HIV and AIDS may impact the continuous economical growth of the BPO&O sector on various levels. It is therefore important to understand the possible economic impact HIV and AIDS may have, not only on the growth of the BPO&O sector, but more importantly on continuous sustainable development. There is currently very little, and in some cases, no information available on the the possible impact of HIV and AIDS on the BPO&O sector in South Africa. The lack of reliable information luther exaggerates the discourse between the possible economic impact and the the industry’s strategic response to prevent and or eliminate the economic impact of HIV and AIDS on the BPO&O sector.
